In simple terms, Cloud ERP solutions are hosted online and can be accessed anywhere, whereas on-premises solutions require an internal IT infrastructure to run the software onsite.
Benefits of using a cloud ERP
Reduced costs – As there are no IT infrastructure or datacentre costs, businesses can make cost-savings from the initial outlay and ongoing server maintenance. With cloud-based ERP, the vendor is responsible for ensuring compliance with best practices both from a maintenance and security point of view.
Mobile device compatibility – Many of today’s cloud ERP solutions offer mobile compatibility, whether this is through a mobile app or an easily accessible online version using a web browser. It’s the perfect solution for remote and hybrid working.
Access the latest updates – An active subscription to 365 Business Central Saas means that you will always have access to the latest software updates, meaning you will always stay up-to-date with enhanced functionality and security patches.
Quicker implementation – The set-up process has never been easier or faster. Once the core system has been implemented, additional tools for functionality can be easily added using a range of extensions.
Scalable model – Designed with growing businesses in mind, Business Central is ready to scale with its array of extensions available from AppSource. For additional needs, a support partner like Kick is at hand to provide extra assistance.
Microsoft ecosystem – As part of the Microsoft ecosystem, Business Central integrates seamlessly with applications across the range. From Teams to Outlook and Dynamics CRM to 365 Sales, you benefit from a smooth user experience wherever you access Business Central.
Benefits of using on-premises ERP
Despite the popularity of cloud solutions, on-premises ERPs still have their place in many modern businesses.
Data control – With an on-premises ERP, you keep complete control of the data that you store and process to run your business. This includes your data backup+ and recovery processes too.
Reducing long-term costs – As the main costs associated with an on-premises ERP include the initial setup costs for IT and the associated infrastructure, these reduce the overall long-term costs of the solution. However, an ongoing support package is advised to access software updates and patches, otherwise, you leave your system open to security risks.
A stepping-stone to the cloud – As the migration from a legacy ERP system to a fully Cloud-hosted solution can be a daunting prospect, an interim solution may be to make the initial move to an on-premises package which will make any prospective move to the Cloud much easier.
Fast network access – Within an office environment, you can benefit from fixed workstations connected to the same internal networks – which will reduce load times significantly. However, should you require a VPN to allow secure access, this may result in a slower connection.
Software updates when it suits – Particularly beneficial when your ERP system has been heavily customised, an on-premises solution means that you are in full control of software updates. This allows you the time to test and deploy any major software updates at a time that suits your business.